Based on the table below,the four-firm concentration ratio equals what percentage of annual sales? $$\begin{array} { l c }
\text { Firm } & \begin{array} { c }
\text { Annual Sales } \
\text { (\$ millions) }
\end{array} \
\hline 1 & 20 \
2 & 30 \
3 & 5 \
4 & 5 \
5 \text { through } 100 & 40 \
\text { Total } & 100 \
\hline
\end{array}$$
A)33 percent
B)40 percent
C)60 percent
D)100 percent

Question

Based on the table below,the four-firm concentration ratio equals what percentage of annual sales? $$\begin{array} { l c } 
\text { Firm } & \begin{array} { c } 
\text { Annual Sales } \
\text { (\$ millions) }
\end{array} \
\hline 1 & 20 \
2 & 30 \
3 & 5 \
4 & 5 \
5 \text { through } 100 & 40 \
\text { Total } & 100 \
\hline
\end{array}$$
A)33 percent
B)40 percent
C)60 percent
D)100 percent

Quizplus · Accepted Answer

The four-firm concentration ratio is calculated by adding the sales of the top four firms and dividing by the total sales. Here, the top four firms have sales of 20 + 30 + 5 + 5 = 60 million, and the total sales are 100 million. Thus, the concentration ratio is (60/100) * 100% = 60%.

Based on the Table Below,the Four-Firm Concentration Ratio Equals What